Welcome to Monday morning.
Let us review the market action on Friday.
There was virtually no action on Friday. After moving both ways, NIFTY settled absolutely flat.
For the record, 15962.75 is the new high for the index.
We had RELIANCE, HINDUNILVR and TCS as the weak spots in our setup. On Friday, RELIANCE moved higher and the recovery helped our MTM to get better.
From Rs. 62995 on Thursday to Rs. 71495 on Friday is good progress.
But can this be sustained?
Market never moves in one direction. A sudden down move can hurt seriously. Today looks to be that kind of day with SGX NIFTY indicating a big gap down.
Expiry of the series is on July 29. We are likely to close the trades on Friday, July 23. One day down move can be followed by a recovery next day. We reached the present position by waiting with the trades and we continue with the wait.
Let the market decide our reward for being patient.
Disclaimer: This post and examples are for teaching purpose only and are not meant as advice/suggestion to trade in these stocks. Trading in Futures and Options can lead to big losses and should be done with appropriate knowledge and advice only. Mentioning the stocks here does not imply that I have a trading position or likely to take a trade in these stocks.